General Atlantic In Talks To Sell Stake In Indian Unicorn Mu Sigma: Report

Data Analytics Startup Mu Sigma Likely To On-Board One More Investor

SUMMARY

The stake is reportedly valued at around $200 Mn

Carlyle and KKR could reportedly be the potential buyers

Founder Dhiraj Rajaram holds a 52% stake in Mu Sigma

General Atlantic (GA), a private equity firm, is reportedly in talks to sell its whole 20% stake in data analytics company Mu Sigma, according to a report by Mint.

New York based, private equity firm has been in talks with contemporaries Carlyle and KKR & Co. to sell the Mu Sigma stakes, which it acquired for an undisclosed amount in 2011.

The stake is now reportedly valued at around $200 Mn. Mu Sigma’s valuation crossed the $1 Bn mark, following a $45 Mn investment by Mastercard in February 2013.

“GA has been looking to sell its stake in Mu Sigma for a while now and discussions have gained momentum in recent months,” a source told to Mint. If the talks with KKR and Carlyle fail, the private equity firm may hire an advisor to reach out to other potential buyers, source added.

According to Mint, GA has explored exiting Mu Sigma earlier too. In 2016, it conducted talks with Caisse de dépôt et placement du Québec (CDPQ), a Canadian pension fund.

In August 2018, Mu Sigma was reported to be in discussions with US-based private equity giant TPG Capital for a large stake sale, which would increase its valuation to be around $1.2 Bn.

Bengaluru-based data science and analytics firm, Mu Sigma was founded by Dhiraj Rajaram in 2004. Mu Sigma secured $108 Mn in a round led by growth equity investor General Atlantic, Fidelity Investments, and Sequoia Capital in 2011. Dhiraj Rajaram holds a major 52% stake in the company after he took over his former spouse and ex-CEO Ambiga Subramanian’s 24% stake for $170 Mn in 2017.

The data analytics firm boasts a clientele of over 140 of the Fortune 500 companies such as Microsoft Corp, Walmart Stores Inc, Dell Inc, and Pfizer Inc. The startup directly competes with companies such as Tata Consultancy Services and Wipro, and startups like Fractal Analytics, LatentView, and Tredence.

According to Statista report, global big data revenue has grown at a CAGR of 30% between 2012-2017 and is expected to double in the next five years.